Can Turbo Tax be used if I have a K-1 Form 65

[davezimmer]

I just got an updated K-1 that is now an Arkansas Form 65 rather than the Federal Form 1065.  What do I do now?

[JoeLi]

There is not a specific entry screen for the AR K-1.  To enter and adjustments reported on your AR K-1, please follow these steps:

1. Make sure you have already entered the federal K-1 in your return.
2. Compare the figures on the federal K-1 to the Arkansas K-1.
3. Any differences will be entered in your Arkansas return.
4. When you go back into your AR return, you will see the screen, You've Finished Your Arkansas Return.
5. Click Update next to Adjustments.
6. On the next two screens TurboTax will list any adjustments that will increase or decrease federal income.  Enter any amounts that apply.
7. If none of the adjustments on the screen apply to your AR K-1, just click Continue and TurboTax will use the federal amounts.

[davezimmer]

First, the original K-1 Form 1065 was a draft.  The K-1 Form 65 replaced it so I can't compare the Arkansas K-1 to a Federal K-1. Second, I live in Washington so I don't do an Arkansas return.  Do I only need to log the state K-1s if I live in those states?

[JoeLi]

Arkansas does require partners to file if they received any income within Arkansas, regardless of the amount.  As such, you should need to file a non-resident Arkansas return to report the K1 income as indicated in my original post.

[davezimmer]

Thanks for your help through this.  To confirm, since I now don't have a Federal K-1 Form 1065, I can remove that draft K-1 from my Federal tax reporting, but now I need to file a state tax report for each state K-1 (I also have a CA Form 565, CA Form 592-B, CO K-1, CT K-1, IL K-1-P, IN K-1, LA K-1, MD K-1 Form 510, MO-NRP, NY K-1 IT-204-IP, D-403 NC K-1, OH IT K-1, PA NRK-1, SC 1065 K-1, WI 3K-1).  For each state report, I just need to include the K-1 earnings, not the earnings I received in the state of Washington.

[JoeLi]

Well, not exactly.  This is true for Arkansas, since they require a state filing for any threshold of state income.  However, we would need to research every states minimum threshold for income that requires a state filing.  That may differ across the states you have listed and may mean you don’t need to file a return in some of those states.

[davezimmer]

Is there a website that lists these thresholds?  Besides CA, the net gain is typically less than $1000 per state.